Top financial blind spots—an advisor’s point of view

Minding the gap

If you’re earning a solid paycheck, saving for retirement, and setting aside something extra for a vacation or a home, it’s easy to assume you’re on track financially. But sometimes financial success depends as much on identifying what you’re missing as celebrating what you’ve achieved.

Michelle Patello, financial advisor and vice president with TIAA Wealth Management, says even the most diligent savers can miss some big-picture risks that could jeopardize their financial futures. “These aren’t always glaring mistakes,” says Patello, who works with clients at every life stage. “They’re often the hidden gaps—the things clients didn’t know they were supposed to know.”

The earlier you can address these blind spots, the more flexibility and peace of mind you’ll enjoy down the road. Whether you’re early in your career, in the thick of it, nearing retirement, or already there, here are six financial blind spots to illuminate now to help you build a clear financial road map ahead.

1. All focus, no framework: Saving without a spending plan

If you’ve dutifully maxed out contributions to your 401(k) or socked away a monthly amount in savings, you’re already ahead of the pack. But have you actually thought about how all those savings translate into your future lifestyle? Patello says many people don’t.

“We spend our working years being told to keep saving, stay diversified, keep investing. But very few people stop to map out how all the pieces fit together for the life they want,” she says. “You’re building the puzzle, but you haven’t looked at the picture on the box.”

Her advice: Get proactive about modeling what your income will look like in retirement. (A TIAA Wealth Management advisor can help with this.) You want to know not just when you can retire, but whether you’ll be able to support the life you actually envision. Take time to learn about concepts like asset location and tax-smart withdrawals, even if retirement feels a long way off.

2. Carrying the financial load solo

Whether you’re sharing finances with a partner or managing things independently, Patello says it’s risky to let just one person in a household handle everything by themselves. “Even couples who share expenses often find one person does most of the saving, investing, and big-picture planning,” she notes.

This can quickly become a crisis when something unexpected happens—illness, job loss, divorce, or death. “I’ve seen countless situations where someone is suddenly left scrambling to understand accounts, logins, or monthly bills because their partner was no longer able to help.”

Her suggestion: Keep a regularly updated list of key accounts, contacts, and passwords. Even if financial discussions aren’t your favorite, aim for semi-annual check-ins with anyone you share money management with. If you’re single, make sure a trusted friend or family member knows where to find your important information in case of emergency. Consider also working with a financial advisor who can get a full picture of your situation and serve as a sounding board as you navigate financial decisions on your own.

3. Ignoring the tax side of adulting

Most people know that taxes are a fact of life, but Patello has met many clients—even high earners—who are caught off guard by the realities of how and when taxes hit different investment accounts.

She points to required minimum distributions (RMDs)—the withdrawals the IRS mandates from tax-deferred retirement accounts starting at age 73. “People are surprised to realize these can be a tax time bomb if they haven’t planned ahead,” she says.

But the real missed opportunity is not understanding the “tax sweet spot”—that window, often in your late 50s through early 70s, when your income might dip (like a sabbatical, career change, or partial retirement) and you have more flexibility for tax moves like Roth conversions. While withdrawals from tax-deferred retirement accounts get taxed as regular income, those from Roth accounts don’t.

What to do: Get curious about the after-tax value of your savings, not just the headline number. Map out when you’ll be accessing different accounts, talk with a financial professional about Roth strategies, and keep your eye on how your tax bracket may change over time.

4. Forgetting to plan for “what if”

Throughout your career, it’s tempting to focus your planning on the “likely” rather than the “unexpected.” But as Patello has seen, curveballs come for all of us—health events, accidents, family members suddenly relying on you financially, or even an unanticipated divorce or job loss.

She recalls a client who was in her early 40s when her spouse’s health crisis upended their entire blueprint. “All the plans, all the dreams can change overnight. The sooner you get used to scenario planning, the better prepared you’ll be if life goes sideways.”

Her advice: Don’t just look at your own needs. Who else might you have to help? Parents, siblings, grown children, or even friends? Consider insurance, cash buffers, and flexible plans that make room for supporting others or yourself through the unknown.

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5. Spending without purpose (i.e., knowing where your money actually goes)

Here’s a question that might surprise you: Do you actually know what you spend each month? Patello says many clients, even diligent savers, struggle to give her an accurate answer.

“I’ll ask someone, ‘What does your lifestyle look like? How much do you spend in a given month?’ and you might be surprised by how many people don’t really have a grasp of their spending,” she explains. Even after detailed discussions, clients often remember forgotten expenses—subscriptions they don’t use, holiday spending that hits twice a year, or dining out more than they realized.

The bigger issue isn’t just tracking expenses—it’s spending with intention. “People tend to focus on gas, groceries, utilities, and say, ‘That’s my lifestyle,’” Patello notes. “But then they don’t think about going out to eat three times a week, or that they love wine, or whatever those other expenses are.”

This lack of awareness can derail financial plans because people either underestimate what they’ll need in retirement or miss opportunities to redirect money toward goals that matter more to them.

What to do: Track your spending for a few months to get a realistic picture. But go beyond just recording numbers—ask yourself whether your spending aligns with your values and priorities. Would you rather spend 20% of your income on dining out, or redirect some of that toward travel or charitable giving? “Understanding where your dollars are going is important,” Patello says, because purposeful spending today sets you up for a more intentional financial future.

6. Letting emotions drive your money habits

If you ever feel guilty about your spending, or anxious about not saving enough (or saving too much), you’re not alone. Patello sees this with clients of every age. “Whether it’s the fear of running out—because you remember hard times growing up—or the urge to splurge to keep up with friends, it’s incredibly common for our emotions—not logic—to drive financial behavior.”

One of her jobs as an advisor, she says, is to help clients recognize those emotional currents. “Some people are so afraid of making a mistake that they barely spend at all, even though they could enjoy life more. Others are stuck in a cycle of stress-shopping or avoiding facing what’s actually going out the door.”

Patello’s tip: Take the shame out of the money conversation. Ask yourself honestly where your money stories come from, and don’t be afraid to talk with your partner, friends, or your advisor when you need a reality check.

The bottom line

No one gets a perfect score when it comes to finances—and that’s okay. “The best thing you can do is stay curious and humble, and commit to having regular money checkups, just like you do with your doctor,” Patello says. After all, your life—and your needs—will keep changing.

If you want support uncovering your own financial blind spots, reach out to a trusted advisor. Sometimes all it takes is a single conversation to see your future more clearly.

Uncover your blind spots with personalized advice

Your TIAA Wealth Management advisor can help you see around corners and build a plan that fits the real (and sometimes unpredictable) pace of your life. Don’t yet have an advisor? Schedule an appointment.